PARAMUS, N.J.--(BUSINESS WIRE)--Movado Group, Inc. (NYSE:MOV) today announced that it has completed its previously announced acquisition of MVMT Watches Inc., the owner of MVMT, a global aspirational lifestyle brand. The purchase price was comprised of an initial payment of approximately $100 million, or approximately $85 million net of tax benefits that are anticipated to be generated from the acquisition, subject to working capital and other closing adjustments, and two future contingent payments that combined could total up to an additional $100 million before tax benefits. The exact amount of the future payments will be determined by MVMT’s future financial performance with no minimum required future payment. The acquisition was funded through cash on hand, although the Company anticipates replenishing a portion of its cash through approximately $50 million of borrowings under its revolving credit facility by October 31, 2018.

As previously announced, the benefits of the transaction include:

• Adds a category-leading millennial brand created though world-class digital execution that has a strong track record of growth, category-leading site traffic and growing customer relationships that will position Movado Group to accelerate its digital strategy.
• Provides a significant global growth opportunity for Movado Group’s portfolio as MVMT continues to cross-sell products within its existing portfolio, expand product offerings within its core categories of watches, sunglasses and accessories, and grow its presence in new markets through its direct-to-consumer and wholesale business.
• Allows MVMT to benefit from Movado Group’s global infrastructure and distribution network to help accelerate MVMT’s expansion in untapped categories, channels and geographies.
• Increases Movado Group’s exposure to both aspirational and millennial consumers through MVMT’s differentiated and affordable watches, sunglasses and accessories.
• Strengthens Movado Group’s digital and direct-to-consumer capabilities.

In its last fiscal year ended December 31, 2017, MVMT achieved revenue of approximately $71 million. Movado Group expects the transaction to be accretive to its results for the fiscal year ending January 31, 2019, exclusive of transaction-related charges and the amortization of anticipated purchase accounting adjustments.

Efraim Grinberg, Movado Group’s Chairman and Chief Executive Officer, stated, “We are pleased to officially welcome MVMT to Movado Group having closed on this strategic acquisition. MVMT provides many benefits to our Company – we add a strong digital brand to our portfolio; broaden our customer reach to millennials, an important consumer segment; and increase the sales and earnings potential of our Company with an acquisition that we expect will be accretive to fiscal 2019 results. We expect to leverage the strengths of MVMT combined with our scale and operating platform to take the brand to a greater level of growth. With the closing of this acquisition, we are well positioned to capitalize on the full potential of our owned and licensed brands portfolio as we focus on delivering sustainable long-term growth.”

Jake Kassan, Co-founder and Chief Executive Officer of MVMT, stated, “I am excited to officially be part of the Movado team. The entire MVMT team shares in my excitement as we will now be able to benefit from the resources and brand expertise of Movado Group that will help MVMT achieve our long-term objectives.”

Kramer LaPlante, Co-founder and Chief Operating Officer of MVMT, added, “I, along with the 39 associates at MVMT, share in the enthusiasm to be part of Movado Group. We expect Movado Group’s scale, relationships and expertise in the timepiece category to accelerate the growth and development of our business as we maximize both businesses’ focus on product innovation, unique design and value for the consumer.”

Movado Group, Inc. designs, sources, and distributes MOVADO®, MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, COACH®, TOMMY HILFIGER®, HUGO BOSS®, LACOSTE®, SCUDERIA FERRARI®, REBECCA MINKOFF® and URI MINKOFF® watches worldwide, and operates Movado company stores in the United States and Canada.